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AUDUSD pair experienced mixed trading, facing some bearish pressure and lingering around the 0.6605 area. The ongoing Fed two-day meeting, due to conclude on Wednesday, and the US May inflation data release will be the key drivers this week.
Equity markets remained under pressure ahead of the US May CPI release and the FOMC meeting. The US 10-year yield dropped 7bps to 4.40%. The USD had mixed performance against major currencies,
AUDNZD climbed to 0.9300, This is likely due to yield differentials and RBNZ hawkishness, also a drop in iron ore prices which has supported the NZD through its effect on the exchange rate.
On the calendar, Chinese CPI & PPI data will be out at 1:30pm NZT and UK monthly GDP data will be released at 6:00pm NZT. But the markets are very much focused on US CPI and the Fed announcement tomorrow morning.
Economic data to watch out for.
• JP – May. PPI y/y
• JP – BOJ Outright Bond Purchase 5 – 10 Years
• CN – May. CPI y/y and May. PPI y/y
• Germany – May. CPI y/y
• UK – Apr. Industrial Production and Apr. Manufacturing Production
• UK – Apr. Trade Balance GBP/Mn
• US – Jun. MBA Mortgage Applications
• US – May. CPI m/m
• EU – ECB’s Guindos Speaks
• US – FOMC Rate Decision
• US – May. Monthly Budget Statement
• US – Fed Chair Powell Holds Post-Meeting Press Conference
Mid market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6608 |
| AUD/NZD | 1.0753 |
| AUD/JPY | 103.85 |
| AUD/CNY | 4.8063 |
| AUD/EUR | 0.6152 |
| AUD/GBP | 0.5187 |
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